A whopping 80 per cent of enterprises are investing today in artificial intelligence (AI), but one in three business leaders believe their company will need to invest more over the next 36 months to keep pace with competitors.

At the same time, enterprises are anticipating significant barriers to adoption and are looking to strategise against those issues by creating a new C-suite position, the chief AI Officer (CAIO) to streamline and coordinate AI adoption. These results come from survey of 260 large organizations that operate globally, conducted by leading technology industry market research firm Vanson Bourne on behalf of Teradata, the leading data and analytics company.

“There is an important trend emerging evident in this report — enterprises today see AI as a strategic priority that will help them outpace the competition in their respective industries,” says Atif Kureishy, vice president, Emerging Practices at ThinkBig, a Teradata company. “But to leverage the full potential of this technology and gain maximum ROI, these businesses will need to revamp their core strategies so AI has an embedded role from the data center to the boardroom.”

Companies are doubling down on AI investments
The survey results found that companies are bullish and expect their AI investments to be worth the upfront cost.

The industries where respondents expect to see the most impact from AI are IT, technology and telecoms (59 per cent), business and professional services (43 per cent), and customer services and financial services were tied for third (32 per cent).

The top three challenges where businesses expect AI to drive revenue are product innovation/research and development (50 per cent), customer service (46 per cent), and supply chain and operations (42 per cent). This mirrored some of the top areas of AI investment, which include customer experience (62 per cent), product innovation (59 per cent) and operational excellence (55 per cent).

While adoption rates are high and companies expect AI to prove its worth, there is a lot of opportunity for future implementation:

● 80 per cent of respondents report that some form of AI is already in production in their organization, although 42 per cent say that there is lots of room for further implementation across the business.
● 30 per cent still believe that their organization isn’t investing enough and will need to invest more in AI technologies over the next 36 months to keep up with competitors in their industry.
● On average, the companies surveyed are currently investing $6.47 million in AI technology — that number rises to $8.25 million average spend for companies in APAC.

Challenges lie ahead for AI realisation
Almost all respondents are anticipating barriers to adoption and ROI — as is the case with nearly every emerging technology. Businesses are ready to continue to invest in AI, likely because of the gains executives and IT decision-makers anticipate in cost and time savings, but lack of IT infrastructure and lack of access to talent are cited as the leading barriers. Surprisingly, business leaders are not as concerned about the impact AI and automation will have on employee morale — only 20 per cent see this as a barrier — and even less, 19 per cent, are worried about making a business case for AI.

● 91 per cent expect to see barriers to AI realization, with lack of IT infrastructure (40 per cent) and lack of access to talent (34 per cent) leading the challenges, followed by lack of budget for implementation (30 per cent), complications around policies, regulations and rights (28 per cent) and impact on customer expectations (23 per cent). By contrast only 19 per cent view a weak business case for AI technologies as a concern and only 20 per cent are concerned about the impact of AI and automation on employee morale.
● Businesses anticipate about a half-and-half split between revenue increases (53 per cent) and cost/efficiency savings (47 per cent) from their AI investments.
● Only 28 per cent of respondents say that their organisation has enough trained people internally to buy, build and deploy AI.

How businesses are strategising to extract ROI from AI
While executives currently rely on existing technology leaders like CIOs and CTOs to steer AI adoption and strategy, they believe the future of AI will be so relevant for creating a strategy across business practices that they will need a CAIO (Chief AI Officer) to coordinate and mandate implementation throughout the enterprise.

● The CIO (47 per cent) and CTO (43 per cent) are leading the effort today, with 62 per cent of respondents say they are planning to hire a dedicated role — a CAIO — to lead the effort in the future.
● Companies expect a $1.99 ROI in the next five years for every dollar invested today and $2.87 in ROI over the next 10 years.
● The industries that most anticipate positive impacts are: IT, technology and telecoms (59 per cent); business and professional services (43 per cent); consumer services (32 per cent); financial services (32 per cent); and manufacturing and production (31 per cent).

What it means
Tech companies have been promising AI as a robust solution and business strategy for the past few years, and this survey shows businesses are realizing the benefits of AI adoption today.

“As we continue to adopt AI solutions across our business, we’re finding it is a proven differentiator for creating opportunities to streamline our operations and drive revenue,” said Nadeem Gulzar, head of Global Analytics, Danske Bank. “Finding the right talent is always a challenge in emerging tech fields and having service-based options, as well as off-the-shelf, will be important to fill the gap as we continue to invest in this technology.”

Enterprises expect AI to be a technology with longevity, planning to double their investment in five years and triple it within 10 years. But to maximize this ROI, companies realize they must re-imagine how AI will disrupt all aspects of their businesses and create a suitably agile strategy to gain ROI. - TradeArabia News Service